1. Field of the Invention
The present invention relates generally to financial loans and, more particularly, to a method and system for the purpose of assisting one or more mortgagors or other borrowers in flexibly managing their financial affairs. One preferred embodiment of the present invention provides a method and system for storing mortgage or other loan account data, collecting mortgage or other loan payments including additional amounts credited to the mortgage or loan account, and enabling mortgagors or borrowers to access the additional credited amounts to cover future mortgage or other loan payments or for any other purpose at the election of the mortgagor or borrower.
2. References
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U.S. Published Patent Applications No.:                2007/0106603        2007/0011084        2007/0011085        2006/0229975        2006/0212393        2006/0184450        2006/0020532        2005/0027647        2004/0254878        2003/0028478        2001/0013017        
3. Description of the Prior Art
Today, mortgages and other loans are not as consumer-friendly as they could be. For example, late payments adversely impact a credit rating of a homeowner who has a mortgage. Generally, prepayment of a portion of the mortgage loan (if permitted) reduces the mortgage principal and subsequent monthly payments, but cannot be used for other purposes.
Thus, if the mortgagor is laid off or has other financial difficulties, his or her home is soon subject to foreclosure and sale—regardless of how much equity he/she has in the home. In such a case, a potential alternative is to refinance. However, being unemployed and having recent late payments on his or her record exposes the mortgagor to very adverse interest rates and terms or to being rejected for a refinance.
Thus, for all these reasons, it would be desirable to provide a method and system which overcome the above problems that may be encountered by mortgagors and that may be encountered by borrowers on other loans, as well. It is to this end that the present invention is directed. The various embodiments of the present invention have many advantages by providing a flexible method and system to manage financial demands for mortgagors or other borrowers.